Factors Influencing the Efficiency and Effectiveness of Municipal Waste Management Expenditure

  • Jana Soukopová Masaryk University, Faculty of Economics and Administration, Lipová 41a, 602 00 Brno
  • František Ochrana Charles University, Faculty of Social Sciences, Center for Social and Economic Strategies, Smetanovo nábřeží 6, 116 36 Prague
  • Daniel Klimovský Comenius University in Bratislava, Šafarikovo nam. 6, 814 99 Bratislava
  • Beáta Mikušová Meričková Matej Bel University, Faculty of Economics, Tajovského 10, 97401 Banská Bystrica
Keywords: Municipalities, Waste Management, Efficiency, Effectiveness, Rational behaviour

Abstract

The study examines how selected factors influence the efficiency and effectiveness of municipal waste management expenditure. The analysis is based on research concerning municipalities in the Czech Republic (year 2014, N=365). Two research methods are used: a survey which generated qualitative data about the preferences of municipal representatives, and an econometric model. The obtained results are compared, and they show that they are complementary to each other. The most important factors are the price, quality of services and frequency of services. This finding indicates the validity of our assumption based on the idea of value for money.

Author Biographies

Jana Soukopová, Masaryk University, Faculty of Economics and Administration, Lipová 41a, 602 00 Brno
Assistant Professor
František Ochrana, Charles University, Faculty of Social Sciences, Center for Social and Economic Strategies, Smetanovo nábřeží 6, 116 36 Prague
Professor
Daniel Klimovský, Comenius University in Bratislava, Šafarikovo nam. 6, 814 99 Bratislava
Associate Professor
Beáta Mikušová Meričková, Matej Bel University, Faculty of Economics, Tajovského 10, 97401 Banská Bystrica
Professor

References

Bailey, S. J. (2001) Public sector economics: theory, policy and practice (Basingstoke: Palgrave Macmillan).
Bel, G., & Costas, A. (2006) Do public sector reforms get rusty? Local privatization in Spain, Journal of Policy Reform, 9(1), pp. 1-24, doi: 10.1080/13841280500513084.
Bel, G., & Fageda, X. (2011) Big guys eat big cakes: firm size & contracting in urban & rural areas, International Public Management Journal, 14(1), pp. 4-26, doi: 10.1080/10967494.2011.547746.
Bel, G., Fageda, X., & Mur, M. (2013) Why do municipalities cooperate to provide local public services? An empirical analysis, Local Government Studies, 39(3), pp. 435-454, doi: 10.1080/03003930.2013.781024.
Bel, G., Fageda, X., & Warner, M. E. (2010) Is private production of public services cheaper than public production? A meta-regression analysis of solid waste & water services, Journal of Policy Analysis & Management, 29(3), pp. 553-577, doi: 10.1002/pam.20509.
Bel, G., & Mur, M. (2009) Intermunicipal cooperation, privatization and waste management costs: Evidence from rural municipalities, Waste Management, 29(10), pp. 2772-2778, doi: 0.1016/j.wasman.2009.06.002.
Bel, G., & Warner, M. (2014) Intermunicipal cooperation and costs: Expectations and evidence, Public Administration, 93(1), pp. 52-67, doi: 10.1111/padm.12104.
Bel, G., & Warner, M. (2015) Factors explaining inter-municipal cooperation in service delivery: a meta-regression analysis, Journal of Economic Policy Reform, 18(1), 1-25, doi: 10.1080/17487870.2015.1100084.
Benito, B., Guillamón, M. D., & Bastida, F. (2015) Public versus Private in Municipal Services Management. Lex localis-Journal of Local Self-Government, 13(4), pp. 995-1018, doi: 10.1111/j.1467-9299.1995.tb00822.x.
Benito, B., Solana, J., & Moreno, M. R. (2014) Explaining efficiency in municipal services providers, Journal of Productivity Analysis, 42(3), pp. 225-239, doi: 10.1007/s11123-013-0358-7.
Bodkin, R. G., & Conklin, D. W. (1971) Scale and other Determinants of Municipal Government Expenditures in Ontario: A Quantitative Analysis, International Economic Review, 12(3), pp. 465-481.
Bouckaert, G., Nemec, J., Nakrošis,V., Hajnal, G., & Tonnison, K. (eds.) (2008) Public Management Reforms in Central and Eastern Europe (Bratislava: NISPAcee).
Brown, C. V., & Jackson, P. M. (1990) Public Sector Economics (Wiley: Blackwell).
Callan, S. J., & Thomas, J. M. (2001) Economies of scale and scope: A cost analysis of municipal solid waste services, Land Economics, 77(4), pp. 548-560, doi: 10.2307/3146940.
Dijkgraaf, E., & Gradus, R. H. (2003) Cost savings of contracting out refuse collection, Empirica, 30(2), pp. 149-161, doi: 10.1007/978-1-4020-8711-0_2.
Dijkgraaf, E., & Gradus, R. H. (2007) Collusion in the Dutch waste collection market, Local Government Studies, 33(4), pp. 573-588, doi: 10.1080/03003930701417601.
Dijkgraaf, E., & Gradus, R. H. (2013) Cost advantage cooperations larger than private waste collectors, Applied Economics Letters, 20(7), pp. 702-705, doi: 10.1080/13504851.2012.732682.
Domberger, S., Meadowcroft, S. A., & Thompson, D. J. (1986) Competitive tendering and efficiency: the case of refuse collection, Fiscal Studies, 7(4), pp. 69-87, doi: 10.1111/j.1475-5890.1986.tb00530.x.
Gradus, R., Dijkgraaf, E., & Wassenaar, M. (2014) Understanding Mixed Forms of Refuse Collection, Privatization, & Its Reverse in the Netherlands, International Public Management Journal, 17(3), pp. 328-343, doi: 10.1080/10967494.2014.935237.
Hirsch, W. Z. (1965) Cost functions of an urban government service: refuse collection, The Review of Economics & Statistics, 47(1), pp. 87-92, doi: 10.2307/1924127.
Hood, C. A (1991) Public Management for All Seasons?, Public Administration, 69(1), pp. 3-19, doi: 10.1111/j.1467-9299.1991.tb00779.x.
McDavid, J. C. (1985) The Canadian experience with privatizing residential solid waste collection services, Public Administration Review, 11(5), pp. 602-608, doi: 10.2307/3109936.
Mikušová Meričková, B., Nemec, J., & Soukopová, J. (2014) The Economics of Waste Management: Evidence from the Czech Republic & Slovakia, Lex Localis -Journal of Local Self-Government, 12(3), pp. 431-449, doi: 10.4335/12.3.431-449(2014).
Nemec, J., Medveď, J., & Šumpíková, M. (2005) Performance measurement in public administration: Selected theory & experience from Slovakia, Politická ekonomie, 2005(1), pp. 95-109.
Ohlsson, H. (2003) Ownership and Production Costs: Choosing between Public Production and Contracting Out in the Case of Swedish Refuse Collection, Fiscal Studies, 24(4), pp. 451-476, doi: 10.1111/j.1475-5890.2003.tb00091.x.
Ochrana, F. (2015) Methodology of Social Sciences (Prague: Karolinum).
Ochrana, F., Šumpiková, M., Nemec, J., Pavel, J., & Meričková, B. (2007) Efektivnost zabezpečování vybraných veřejných služeb na úrovni obcí (Prague: Nakladatelství VŠE).
Parthan, S. R., Milke, M. W., Wilson, D. C., & Cocks, J. H. (2012) Cost estimation for solid waste management in industrialising regions–Precedents, problems and prospects, Waste Management, 32(3), pp. 584-594, doi: 10.1016/j.wasman.2011.11.004.
Plata-Díaz, A. M., Zafra-Gómez, J. L., Pérez-López, G., & López-Hernández, A. M. (2014) Alternative management structures for municipal waste collection services: The influence of economic and political factors, Waste Management, 34(11), pp. 1967-1976, doi. 0.1016/j.wasman.2014.07.003.
Pollitt, C., & Bouckaert, G. (2001) Public Management Reform: A comparative analysis-new public management, governance, and the Neo-Weberian state (Oxford: Oxford University Press).
Prager, J. (1994). Contracting Out Government Services: Lessons from the Private Sector. Public Administration Review, 54 (2), pp. 176-184, doi: 10.2307/976527.
Reeves, E., & Barrow, M. (2000) The impact of contracting-out on the costs of refuse collection services. The case of Ireland, Economic and Social Review, 31(2), pp. 129-150.
Simões, P., & Marques, R. C. (2012) On the economic performance of the waste sector. A literature review, Journal of Environmental Management, 106, pp. 40-47, doi. 10.1016/j.jenvman.2012.04.005.
Simões, P., Cruz, N. F., & Marques, R. C. (2012) The performance of private partners in the waste sector, Journal of Cleaner Production, 29-30, pp. 214-221, doi. 10.1016/j.jclepro.2012.01.027.
Soukopová, J., & Malý, I. (2013) Competitive environment in waste management & its impact on municipal expenditures, Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 61(4), pp. 173-183, doi: 10.11118/ actaun201361041113.
Soukopová, J., Malý, I., Hřebíček, J., & Struk, M. (2013) Decision Support of Waste Management Expenditures Efficiency Assessment. In Hřebíček, J., Schimak, G, Kubásek, M & Rizzili, A. E. (eds.) Environmental Software Systems. Fostering Information Sharing (Berlin: Springer), pp. 651-660, doi: 10.1007/978-3-642-41151-9_61.
Soukopová, J., Nemec, J., Matějová, L., & Struk, M. (2014) Municipality Size and Local Public Services - Do Economies of Scale Exist?, NISPAcee Journal of Public Administration and Policy, 7(2), pp. 30-43.
Soukopová, J., & Klimovský, D. (2016) Intermunicipal Cooperation and Local Cost Efficiency. The Case of Waste Management Services in the Czech Republic. In Špalková, D & Matějová, L. (eds.) Proceedings of the 20th International Conference Current Trends in Public Sector Research (Brno: Masarykova univerzita), pp. 398-405.
Soukopová, J., & Vaceková, G. (2015) Competition and Municipal Waste Management Expenditure: Evidence from the Czech Republic, Olomouc Region, Scientific Papers of the University of Pardubice, Series D, 22(35), pp. 128-138.
Stevens, B. J. (1978) Scale, market structure, & the cost of refuse collection, The Review of Economics & Statistics, 60(3), pp. 438-448, doi: 10.2307/1924169.
Svidroňová, M., & Vaceková, G. (2012). Current state of self-financing of private non-profit organizations in the conditions of the Slovak Republic, Technological and Economic Development of Economy, 18(3), pp. 438-451, doi: 10.3846/20294913.2012.702695.
Szymansky, S., & Wilkins, S. (1993) Cheap rubbish? Competitive tendering & contracting out in refuse collection–1981–88, Fiscal Studies, 14(3), pp. 109-130, doi: 10.1111/j.1475-5890.1993.tb00489.x.
Tonnison, K., & Wilson, J. (2007) Best Value in Transitional Countries? Some Evidence from Estonia, Public Management Review, 9(1), pp. 87-106, doi: 10.1080/14719030601181241.
Vaceková, G., & Svidroňová, M. (2014) Benefits and risks of self-financing of NGOS-empirical evidence from the Czech republic, Slovakia and Austria, E+ M Ekonomie a Management, 17(2), pp 120-129, doi: 10.15240/tul/001/2014-2-009
Valentinov, V., & Vaceková, G. (2015) Sustainability of rural nonprofit organizations: Czech Republic and beyond, Sustainability, 7(8), pp. 9890-9906.
Zafra‐Gómez, J. L., Prior, D., Díaz, A., Plata, M., & López-Hernández, A. M. (2013) Reducing cost in times of crisis: Delivery forms in small and medium sized local governments´ waste management services, Public Administration, 91(1), pp. 51-68, doi: 0.1111/j.1467-9299.2011.02012.x.

Published
2016-07-31
Section
Conference Paper